Answer:
The concept of limited resources and unlimited needs or desires is known as scarcity. It is a fundamental economic concept that refers to the situation where there are not enough resources available to satisfy all of the demands or wants of individuals or society as a whole.
This scarcity exists because resources such as land, labor, and capital are finite, whereas human wants and needs are infinite. As a result, individuals and societies must make choices about how to allocate scarce resources in the most efficient and effective manner possible to maximize their satisfaction and well-being.
Scarcity is the underlying principle that drives all economic decision-making, from the choices made by individual consumers to the policies enacted by governments and international organizations.